INDIGENOUS PEOPLES/ETHNIC MINORITIES AND POVERTY REDUCTION INDONESIA Environment and Social Safeguard Division Regional and Sustainable Development Department Asian Development Bank, Manila, Philippines June 2002 © Asian Development Bank 2002 All rights reserved Published June 2002 The views and interpretations in this report are those of the authors and do not necessarily reflect those of the Asian Development Bank. ISBN No. 971-561-440-X Publication Stock No. 030902 Published by the Asian Development Bank P.O. Box 789, 0980, Manila, Philippines FOREWORD his publication was prepared in conjunction with an Asian Development Bank (ADB) regional technical assistance project on Capacity Building for Indigenous TPeoples/Ethnic Minority Issues and Poverty Reduction, covering four developing member countries (DMCs) in the region, namely, Cambodia, Indonesia, Philippines, and Viet Nam. The project is aimed at strengthening national capacities to combat poverty and at improving the quality of ADB’s interventions as they affect indigenous peoples. The report was prepared jointly by Ms. Myrna A. Safitri and Mr. Rafael Edy Bosko, ADB consultants based in Indonesia, under the guidance of Mr. Roger Plant, the leader of the consultant team. The findings contained herein are the result of several activities under the technical assistance, including two provincial workshops in Palu, Central Sulawesi, on 5–6 June 2001, and Samarinda, East Kalimantan, on 28 June 2001, respectively; and a national workshop in Jakarta on 25–26 September 2001. Extensive fieldwork and consultations with high-level government representatives, indigenous peoples themselves, and nongovernment organizations (NGOs) were also undertaken. The findings of this study were shared at a regional workshop held in Manila on 25–26 October 2001, which was attended by representatives from the four participating DMCs, NGOs, ADB, and other finance institutions The project was coordinated and supervised by Dr. Indira Simbolon, Social Development Specialist and Focal Point for Indigenous Peoples, ADB. The assistance of Jay Maclean in editing and of Anita L. Quisumbing and Lily Bernal in production is acknowledged with thanks. The publication is one of a series of documents produced by the project. They comprise four country reports (on Cambodia, Indonesia, Philippines, and Viet Nam, respectively), a regional report covering these four countries, and the proceedings of the regional workshop that resulted in recommendations for a regional action plan for indigenous peoples/ethnic minorities. In addition, a regional report on the subject in Pacific DMCs was prepared under a separate consultancy. It is hoped that the information in this publication series on the issues and concerns of indigenous peoples/ethnic minorities will help guide national governments and development partners in improving future interventions to recognize, promote, and protect the rights of these peoples. ROLF ZELIUS Chief Compliance Officer and Deputy Director-General Regional and Sustainable Development Department ACKNOWLEDGMENTS his report could not have been completed without the support and cooperation of many people and institutions. We would like to thank the Directorate General of Human Rights TProtection of the Department of Justice and Human Rights for its role in the implementation of this Project. Special thanks and appreciation go to Dr. Hafid Abbas, its Director General, for his active involvement from the very beginning of the Project. Appreciation and thanks also go to all those government departments and institutions, adat community organizations, particularly the Aliansi Masyarakat Adat Nusantara (AMAN), universities, aid agencies, and nongovernment organizations in Jakarta, East Kalimantan, Central Sulawesi, and West Sumatra, that provided support, cooperation, and valuable input during discussions and during the project’s national workshop in Jakarta. We particularly extend our thanks to the adat communities in the villages of Sekolaq Darat and Benung in East Kalimantan, and Kalora and Toro in Central Sulawesi, for their warm and sincere welcome during our visit and discussions with them. Our thanks and appreciation also go to our partners in organizing the provincial workshops: the Center for Social Forestry of the University of Mulawarman in East Kalimantan; and the Consultant Office of the Sulawesi Rainfed Agriculture Development Project and Regional Planning Agency, both in Central Sulawesi. We also extend our gratitude to Dr. Roger Plant (consultant team leader) and Dr. Indira Simbolon (ADB task manager) for their great support and guidance during the execution of the project. Myrna A. Safitri and Rafael Edy Bosko CONTENTS Foreword .......................................................................................................................... iii Acknowledgments ............................................................................................................ iv Abbreviations .................................................................................................................. vii 1. Introduction ................................................................................................................. 1 Rationale ........................................................................................................................................ 1 Methodology .................................................................................................................................. 1 Structure of the Report .................................................................................................................. 2 2. Adat Communities in Indonesia: Identification and Issues .......................................... 3 Different Contexts .......................................................................................................................... 3 Who are the Indigenous Peoples in Indonesia? ........................................................................... 7 Identifying Adat Communities for Poverty Reduction .................................................................. 8 Conclusions .................................................................................................................................... 9 3. Adat Communities in Indonesian Legislation ............................................................. 13 Existing Legislation on Adat Communities and their Rights ..................................................... 13 Latest Developments ................................................................................................................... 18 Conclusions .................................................................................................................................. 20 4. Poverty Reduction Programs for Adat Communities ................................................. 21 Review of Poverty Reduction Programs ..................................................................................... 21 Conclusions .................................................................................................................................. 24 5. Poverty of Adat Communities: Trends, Causes, and Perceptions .............................. 27 Poverty Trends ............................................................................................................................. 27 The Reality of Adat Community Life ........................................................................................... 28 Perceptions of Adat Communities about Poverty ....................................................................... 37 Recent Trends .............................................................................................................................. 42 6. Lessons Learned from Asian Development Bank-Supported Projects ...................... 47 Project Review ............................................................................................................................. 47 General Analysis .......................................................................................................................... 52 vi Indigenous Peoples/Ethnic Minorities and Poverty Reduction: Indonesia 7. Draft National Action Plan ......................................................................................... 55 Bibliography .................................................................................................................... 63 Annex 1 Location and Size of Isolated Adat Communities ............................................ 67 Annex 2 Adat Community Organizations that have joined AMAN ................................. 67 Ethnicity and Poverty vii ABBREVIATIONS ADB – Asian Development Bank AMAN – Aliansi Masyarakat Adat Nusantara (Alliance of Indonesian Indigenous People) BAL – Basic Agrarian Law CERD – Community Empowerment for Rural Development CGI – Consultative Group on Indonesia CSIAD&CP – Central Sulawesi Integrated Area Development and Conservation Project IDT – Inpres Desa Tertinggal (President’s Instruction on Backward Villages) JPS – Jaring Pengaman Sosial (Program on Social Safety Net) KUB – Kelompok Usaha Bersama (farmers’ business-oriented group) NGO – nongovernment organization PPK – Program Pengembangan Kecamatan (Subdistrict Development Program) PRA – participatory rural appraisal PRPTE – Proyek Rehabilitasi dan Pengembangan Tanaman Eksport (a project on rehabilitation and development of export crops) SRADP – Sulawesi